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The chart shows the YTD stock performance of two equally weighted baskets of stocks. The orange line depicts the YTD performance of a basket of the top five MSOs by market cap: Curaleaf CURLF, GTI GTBIF, Trulieve TCNNF, Verano VRNOF, and Cresco CRLBF. The green line shows the YTD results of a basket of the top five cannabis lenders and sale-leaseback providers: IIPR IIPR, Chicago Atlantic, AFC Gamma AFCG, NewLake Capital NLCP, and Silver Spike SSIC.
The blue line shows the MSOS ETF’s YTD performance. Note that the MSOS ETF price has a .97 correlation with the price of a simple equal-weighted basket of the top five MSOs but significantly underperforms the basket due to administrative expenses.
On a YTD basis, the 14.7% YTD return on the lender group outpaced the 9.75% return on the MSO basket and significantly exceeded the 0.25% loss on the MSOS ETF. Both the MSO basket and the MSOS ETF have dropped for four consecutive weeks.
The slow and steady rise of the lender group basket vs. the wild ride the MSO group has experienced is rooted in the fundamental nature of the two bets. We continue to believe that a doubling of MSO prices is likely as
